As Christie pitches the A.C. plan, critics speak out

ATLANTIC CITY - Gov. Christie on Wednesday called for dramatic changes in government oversight of Atlantic City's troubled gaming and tourism industries to remake the resort into "Las Vegas East."

"Atlantic City is dying," the governor said.

Stressing that the problems would not fix themselves, Christie said he was willing to take the political risks necessary and put the power of his office behind an effort to help the city become a true destination.

Yet criticism of Christie's plans was swift from some lawmakers in North Jersey, where the governor began the day with a news conference at the 50-yard line of the New Meadowlands Stadium.

While legislative leaders agreed that action was needed to help the gaming industry, they made it clear Wednesday that they would study the issues, not simply rush to adopt the proposals put together by a commission created by the governor.

Sen. Richard Codey (D., Essex) criticized the commission's report for rejecting the placement of video-lottery terminals in the state's struggling racetracks, including the Meadowlands, as neighboring states have done.

"The whole thing makes absolutely no sense," he said, "and it's a tragedy. At a time when we desperately need money, we're sending it to other states."

Christie's comments followed the release of a report that recommended a sweeping overhaul of New Jersey's fiscally struggling gaming, entertainment, and sports concerns.

Citing an ineffective municipal government, the report called for the legislative creation of an authority to take over the Atlantic City casino district and, in effect, become a separate government within the resort. To combat negative perceptions by investors and tourists, an immediate goal of the district would be to make the resort "clean and safe" by July 1, 2011.

Other recommendations, if enacted, would overhaul regulatory requirements that date to the 1970s.

"For 30 years, Atlantic City has had a monopoly on gambling. As a result," Christie said, "Atlantic City has not done everything to change to exploit its natural advantages."

In the afternoon, on an outdoor stage behind Boardwalk Hall, Christie lambasted "regional and geographical differences and parochial interests" that have contributed to Atlantic City's decline.

For too long, he said, there has been a "North vs. South" attitude in the state that has exacerbated Atlantic City's troubles.

"When one part of the state is down, the other part has to help," he said.

Codey, however, rejected assertions by Christie, the casino industry, and many South Jersey lawmakers that slots elsewhere in New Jersey would eat into the Atlantic City market, questioning why people in North Jersey would go to the resort now anyway when they could visit Yonkers, N.Y., or the Poconos.

But Christie said it did not make sense to have gaming in New Jersey outside Atlantic City when the industry there was in such desperate straits - at least for now.

The report recommends ending the casino-sponsored subsidies - about $30 million a year - and other state financing for the money-losing horse-racing industry.

"The state can no longer afford to subsidize a losing proposition," said Christie, "and that's why I'm not in favor of VLTs at the racetracks."

The report also recommends divesting the New Jersey Sports and Exposition Authority of operating responsibilities at the Meadowlands and Monmouth Park racetracks and the Izod Center, and reducing the money-losing agency's role to that of landlord.

The report additionally calls for providing financial support to the stalled Xanadu retail and entertainment complex in the Meadowlands, as long as the state benefits as an investor, and for considering privatizing operations of the Izod Center.

Assembly Speaker Sheila Oliver (D., Essex), whose support Christie needs because she has the power to post bills for a vote, voiced reservations about Christie's plans because they concentrate the state's scarce resources in Atlantic City.

"Do I as speaker of the General Assembly post legislation that is not going to be equitable and fair to other regions of the state?" Oliver asked. "I would not."

But Sen. Kevin O'Toole (R., Passaic), who sits on the gaming committee, said that the proposals deserved a full vetting and that Atlantic City must do well.

In a written statement, Senate President Stephen Sweeney (D., Gloucester) said the report went only halfway and "failed to offer proposals that would actually grow the industry, attract new investment, and restore the state's reputation as the East Coast's preeminent gaming destination."

Most of the recommendations require legislative approval, and Christie urged lawmakers to act by the fall. A group of legislators had already planned a gaming summit for early August to address many of the issues cited by Christie's advisory panel.

Cochairmen of the summit, which will consist of a series of legislative hearings, are Sen. Jim Whelan (D., Atlantic) and Assemblyman John Burzichelli (D., Gloucester).

Burzichelli said the report was a good first step and expressed agreement with some of the findings, such as updating gaming regulations. He said in an interview that his goal, too, was to have a package of legislation in place by fall that would "take the gaming industry into the next several decades."

"The status quo is not acceptable," he said.

In Atlantic City on Wednesday, Christie said the proposed state oversight of the casino district would be a partnership among everyone with a stake in the city.

The new authority would answer directly to the governor. Boardwalk Hall and the Convention Center would fall under the authority and assume the operations of the Atlantic City Convention and Visitors Authority. Revenue collected by the Casino Reinvestment Development Authority would stay in Atlantic City instead of being distributed statewide.

"I think the governor's plan is one of collaboration, cooperation, and partnership," said Atlantic City Mayor Lorenzo Langford, who stood near the stage, "and I definitely embrace that notion."

Langford said that, if Atlantic City was perceived as being unsafe and unclean, perception alone was a problem.

Within two hours of the governor's address on the Boardwalk, City Council members held a regularly scheduled meeting. The hot topic: Christie's proposal.

Whelan, a former mayor of Atlantic City, contended at the meeting that taking the Meadowlands out of the gaming equation could spur new casino investment in Atlantic City and jump-start the stalled Revel casino project.

"There is a lot of work that needs to be done," said Councilman Moisse Delgado. "Maybe, in the past, there have been a lot of people who wanted to have their hands on the cookies that the casino money makes, but no one has wanted to get their hands dirty in the batter. Now it's time to get their hands dirty."